In this article, we will take a look at the 15 states with the highest homeless population in the US. If you want to skip our detailed analysis, you can go directly to the 5 States with the Highest Homeless Population in the US.
Homelessness Reaches New Heights in the US
In the United States, homelessness remains a significant concern, impacting hundreds of thousands of individuals across the nation. On December 15, 2023, The New York Times reported that the number of individuals experiencing homelessness in the United States reached a record high in 2023, as reported by the federal government. In January 2023, the official count identified more than 650,000 people as homeless. The homeless population had increased by over 70,000 individuals year-over-year. This surge, a 12% increase from 2022, marks the largest one-year rise in homelessness since the government began collecting data in 2007.
A study by Homebay highlights the connection between expensive housing and the prevalence of homelessness in the United States. An analysis of the 50 largest metropolitan areas in the US indicated that cities where home prices exceed the national average tend to have a higher rate of homelessness. Conversely, cities with home prices below the national average have significantly fewer homeless individuals, approximately 2.5 times less. The lack of affordable housing directly contributes to the rising rate of homelessness in the US. You can also take a look at the US cities with the highest homeless population per capita.
Affordable Housing Market: Key Trends and Major Players
The affordable housing market refers to the availability and affordability of housing units for low and middle-income earners. The market plays a crucial role in ensuring that people with limited means and finances have access to safe, reasonable, and affordable housing. According to a report by The Business Research Company, the global affordable housing market was valued at $54.26 billion in 2023. Looking forward, the market is expected to grow at a compound annual growth rate (CAGR) of 5.4% from 2024 to 2028 to reach a value of $71.13 billion by the end of the forecast period. In 2023, North America was the largest region in the global affordable housing market.
In one of our previous articles about the countries with the highest homeless population, we discussed that the year 2023 saw a surge in global unemployment rates. Rising home prices coupled with stagnant wages and the rise in unemployment have made it challenging for many families and individuals to find safe and decent housing, which is leading to an increase in demand for affordable housing. Rapid urbanization is further fueling the demand for affordable housing. Moreover, the rising concentration of the majority of the population is a key factor driving growth in the market. Rise in government policies supporting affordable housing and collaborations among key market players are expected to augment market growth during the forecast period.
On March 5, Reuters reported that the US Treasury Department has introduced new measures to increase the availability of affordable housing by tapping into unused COVID-19 relief funds allocated to state and local governments. These efforts are part of the Biden administration’s strategy to tackle a significant economic issue affecting many Americans: the lack of affordable housing. The Treasury will be permitting state and local authorities to utilize untapped funds from the $350 billion State and Local Fiscal Recovery Fund to back housing initiatives catering to families with incomes up to 120% of the local median income, a substantial rise from the previous 65%. Such initiatives by governments create growth opportunities and contribute to market expansion.
Some of the most notable corporations that are catering to the homeless in the US are Cavco Industries, Inc. (NASDAQ:CVCO), American Homes 4 Rent (NYSE:AMH), and Bluerock Homes Trust, Inc. (NYSEAMERICAN:BHM).
Bluerock Homes Trust, Inc. (NYSEAMERICAN:BHM), based in New York City, is an externally managed Real Estate Investment Trust (REIT). It owns and manages high-quality single-family properties, particularly in the Sunbelt and Western United States regions, with a focus on the knowledge economy and high quality of life. Bluerock Homes Trust, Inc.’s (NYSEAMERICAN:BHM) main goal is to generate favorable investment returns by curating a portfolio of existing single-family rental homes and constructing communities tailored for rental purposes. The properties are strategically spread across various growing markets, catering to a rising number of middle-income renters who desire a single-family lifestyle without the upfront and ongoing investments associated with homeownership.
Some corporations are actively making significant investments in strategies to combat homelessness. Cavco Industries, Inc. (NASDAQ:CVCO) is one of the largest producers of manufactured and modular homes, vacation cabins, park model RVs, and commercial buildings in the US. It specializes in designing and producing factory-built housing products. On February 28, Cavco Industries, Inc. (NASDAQ:CVCO) announced the successful purchase of homes by two employees who completed its Homes for Our Own (HFOO) program. This unique initiative offers a six-week workshop to educate staff on budgeting, and home buying, and provides financial assistance for their first home purchase. The program is sustained by voluntary donations from Cavco Industries, Inc. (NASDAQ:CVCO) employees through payroll deductions, matched by the company up to $200,000 annually. This financial support aids HFOO graduates in buying their first homes, contributing to addressing the affordable housing crisis.
American Homes 4 Rent (NYSE:AMH), or simply AMH, is an internally managed Real Estate Investment Trust (REIT) focused on acquiring, developing, renovating, leasing, and managing homes as rental properties. It aims to simplify the experience of leasing a home and delivering peace of mind to households across the country. American Homes 4 Rent (NYSE:AMH) owns nearly 60,000 single-family properties in the Southeast, Midwest, Southwest, and Mountain West regions of the US. By adding affordable rental homes to the market and focusing on consistent growth, it plays a crucial role in addressing the housing needs of Americans, especially those seeking affordable and stable housing options. On February 22, American Homes 4 Rent (NYSE:AMH) reported strong financial and operating results for the fiscal fourth quarter of 2023. The company reported funds from operations (FFO) of $0.43 per share, surpassing estimates by $0.01. The company reported a revenue of $408.66 million. Here are some comments from American Homes 4 Rent’s (NYSE:AMH) Q4 2023 earnings call:
“For the full year, core FFO per share grew nearly 8% driven by sustained long-term rental demand, superior operational execution supported by our strategic initiatives and consistent production out of our development program. The single-family rental sector and the AMH platform continued to benefit from supply-demand imbalances. The national housing shortage, driven by limited homes for purchase in the open market has created challenging home affordability dynamics for home-buyers. AMH is doing its part to solve this housing shortage.
We are adding new supply to the market and operating high-quality assets in desirable family-friendly locations at a significant discount to the cost of ownership. We are well-positioned to deliver consistent results for years to come.”
Now that we have briefly discussed what’s going on in the affordable housing market, let’s take a look at the 15 states with the highest homeless population in the US.
Copyright: ulubird / 123RF Stock Photo
Methodology
In this article, we have listed the 15 states with the highest homeless population in the US. To collect data for our list of the states with the most homeless people, we consulted The 2023 Annual Homelessness Assessment Report (AHAR) by The U.S. Department of Housing and Urban Development. We used the latest data available in their dataset, which provided us with estimates of people experiencing homelessness at the state level as of December 2023. We then narrowed down our selection to rank the 15 states with the highest homeless population in the US, which are listed below in ascending order.
15 States with the Highest Homeless Population in the US
15. North Carolina
Total Homeless Population: 9,754
North Carolina is a state in the Southeastern region of the US that ranks among the 15 states with the highest homeless population in the US. North Carolina also ranks among the top 10 most populated states in America. According to recent estimates, there are 9,754 people experiencing homelessness in North Carolina.
14. New Jersey
Total Homeless Population: 10,264
New Jersey, in the Northeast US, is the most densely populated state in the US. Known for its boardwalk beaches and Atlantic City casinos, New Jersey attracts millions of tourists each year. However, there are more than 10,000 people in New Jersey that are experiencing homelessness.
13. Ohio
Total Homeless Population: 11,386
Ohio is a state in the Midwestern region of the US. It is one of the most populated states in the country. According to recent estimates, 11,386 people are experiencing homelessness in the US state of Ohio.
12. Illinois
Total Homeless Population: 11,947
Illinois, a state in the Midwest, ranks among the top 12 on our list of the states with the highest homeless population in the US. Known as “the Prairie State,” Illinois is characterized by its farmland, forests, rolling hills, and wetlands. In Illinois, the number of individuals experiencing homelessness is estimated to be 11,947.
11. Georgia
Total Homeless Population: 12,294
Georgia is a state in the Southeastern region of the US. Atlanta, Georgia’s capital city, is a major hub for finance, technology, manufacturing, and transportation. Recent estimates show that there are 12,294 people experiencing homelessness in the US state of Georgia.
10. Pennsylvania
Total Homeless Population: 12,556
Pennsylvania is a state in the Mid-Atlantic region that ranks among the top 10 on our list of states with the highest homeless population in the US. It is one of the most populated states in the US. However, there are 12,556 people in Pennsylvania that are experiencing homelessness.
9. Arizona
Total Homeless Population: 14,237
Arizona, in the Southwestern US, is the sixth largest state in the US by size. Recent estimates show that there are 14,237 people in Arizona who are experiencing homelessness. Arizona also has one of the highest percentages of people experiencing homelessness who are unsheltered.
8. Colorado
Total Homeless Population: 14,439
Colorado is a state in the Mountain West sub-region that is renowned for its breathtaking landscapes of mountains, rivers, and plains. According to recent estimates, 14,439 people are experiencing homelessness in Colorado. It ranks 8th on our list of the states with the highest homeless population in the US.
7. Massachusetts
Total Homeless Population: 19,141
Massachusetts is one of the smallest and most densely populated states in the US. Home to prestigious educational institutions, such as Harvard University and the Massachusetts Institute of Technology (MIT), Massachusetts also ranks high among the smartest states with the highest average IQ. Despite that, there are 19,141 people experiencing homelessness in the state of Massachusetts.
6. Oregon
Total Homeless Population: 20,142
Oregon is a state in the Pacific Northwest region. It is one of the most geographically diverse states in the US. According to recent estimates, there are 20,142 people experiencing homelessness in Oregon, which ranks 6th on our list of the 15 states with the highest homeless population in the US.
Click to continue reading and see 5 States with the Highest Homeless Population in the US.
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Disclosure: None. 15 States with the Highest Homeless Population in the US is published on Insider Monkey.